Hungary to sell Malev Airlines

Airline Industry Information, Sept 8, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Malev Airlines is to be put on the market once again by the Hungarian government in a one-round open tender which will be open for bids until 20 October 2004.

The Hungarian state carrier has been up for sale before and the government had to buy back a 35% stake it had sold to Alitalia after the Italian airline was forced to sell its foreign interests by the European Union.

Hungary plans to sell a 99.95% stake in the airline with 90% of the purchase price needed in cash. The buyer would also have to take over Malev's HUF36.7bn of debts and inject fresh capital into the airline, reports The Associated Press.

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